Samsung and TSMC fail to excite investors used to torrid AI growth
Reaction to a day of record-setting results was muted, weighed down by worries about the staying power of a boom propped up by rising debt levels.
Samsung Electronics reported nearly nine times higher quarterly operating profit, while Taiwan Semiconductor Manufacturing Co. (TSMC) saw a 51% surge in sales, driven by aggressive investments in AI infrastructure. Despite these record-setting results, investor reaction was relatively muted as concerns lingered about the sustainability of the investment boom, fueled by rising debt levels.
Share prices for Samsung fell 2.4% in Seoul, and both companies' suppliers, including Tokyo Electron, Advantest, and Ibiden, experienced declines in Tokyo. The muted market response reflects growing uncertainty about the longevity of AI spending, particularly as companies face mounting pressure from higher borrowing costs worldwide.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
